Friday, June 25, 2010
In the wake of soaring food prices the government decided to release five million tonnes of wheat in the open market and retain zero duty on sugar and wheat imports. The EGOM (Empowered Group of Ministers), headed by Pranab Mukherjee Finance Minister, decided to offload wheat under the OMSS (Open Market Sale Scheme) at prices lower than the market price.
From the government godowns between July and March wheat will be sold at Rs 12.54 per kg against retail price of around Rs 14 a kg in Delhi. The annual food inflation touched 16.90 per cent, as on 12th June. For soaring prices the government has been under attack
from the opposition. The ministers’ panel did not want to take a chance and retained the zero-duty regime for the import of the refined sugar, despite a sharp fall in sugar prices to Rs 32-34 a kg from nearly Rs 50 a kg five months ago.
Sources said the Empowered Group of Ministers felt although sugar prices have dropped in the last few months, but they are still high as compared to last year’s. Sources said, the same view prevailed in the meeting, even for wheat. Since October 2009 the
government has been selling wheat in the open market. Out of two million tonnes allocated for the open market operation as much as 1.2 million tonnes of wheat has been lifted as of now. India imported 2 lakh tonnes of wheat during April-May this fiscal and 1.58 lakh
tonnes of wheat last year. Since February, 2009 the country imported 6 million tonnes of Sugar.
